tv Fast Money Halftime Report CNBC August 15, 2016 12:00pm-1:01pm EDT
dudley, cpi could raise eyebrows in addition wednesday. >> filtering in leading up to that jackson hole event next week. >> all right. see if these gains hold through the course of the afternoon. right now, dow up 75. over to headquarters and scott wapner and the "half." carl, thanks. welcome to the "halftime report." i'm scott wapner. top trade this hour, the market melt up, all three major averages hitting new highs again today with at least one wall street strategist now growing more optimistic on stocks. but despite the near daily records, a large group of investors remain unconvinced with cash on the sidelines sitting at record levels. brings us to this question -- is a flood of money about to buy into the rally? if so what could that mean for your money in the months ahead? pete, i want to ask, are we witnessing a change sentiment? people are starting to like this rally a little more? but how do you reckoncile that
with the cash on the sidelines? >> part of the rally, too. cash on the sidelines starting to chase some is trying to get in there. >> watching this market grind and continue to move to the upside. yes, i do think there are people finally saying they've got to throw in the towel in certain areas, at least jump into the areas moving. look at the way chips traded. the way technology is trading. energy had that dip under that 50-day moving average. look at xle. since then, scott, watched it as oil's rising seeing energy stocks picking back up as well. >> joe, nasdaq 100, positive pe to pete's point up 15% since the brexit low. where will it find a home? >> money is finding a place everywhere. multiple asset classes. look at performance. year to date, european equities, dax rally 10%. the place that hasn't rallied is japan, although japan is up 8%
quarter to date. when you look at the multiple asset classes, whether it's investment grade bonds, whether high yield bonds, whether it is the emerging markets or u.s. equities themselves, all going up universally leaving a money manager to chase that performance. i believe pete's right. that's what this is. really a chase for performance right now. >> offense or defense, jim ji is that the way to go? do you go with the sectors that led us to this point, or do you rotate money into the ones that have performed lately and you think they're going to keep doing it? >> scott, i have a hard time looking out there and seeing things that really haven't importanted too well this year. maybe -- can't point at the oil sector any more. i don't think it's so much a question of rotation but i do think timing comes into play here in the following way -- what joe just said about the technical nature of this and money markets throwing money at the market will definitely come to the fore after labor day. between now and then you have this choppy, light liquidity three weeks to get through when
any good or bad news will be overreacted to, and in that sort of context, tell you what i'm looking at now. talked about this before. the volatility index is so low it's cheap to buy insurance for the next three weeks against something unforeseen happening to move the markets lower. >> got to figure at some point, right? the market continues to melt up, march higher or however you want to characterize it. wall street gets more bullish. that happens over at piper jeffrey today, a technical call but their analysts takes the s&p to 2350. says never short a dull market. says breadth continues to expand. further upside in commodities could underpin more strength in energy, which could help the overall market, and market breadth itself, josh, continues to expand. >> i've been focused on market breadth all year and still believe it's the key to what we're seeing here and very, very important that we highlight things happening that had been seen as impossible even six months ago. for example, the nasdaq making
all-time highs with all four fang stocks red. happened on repeat dayed this year. semiconductor index at a high hasn't seen since september of 2000. look at people talking about the alleged low return environment. meanwhile, the worst performing major index for u.s. stocks is microcaps up 5.2% year to date and then look at the best. russell 2000 value. stocks that nobody would talk about last year, the year before. up 32% from the february lows. having a massive year-to-date performance and these are areas that have been neglected, that have not been in the bull market until recently. this is a new development to have breadth this good and i think a much more important thing to pay attention to and that headlines. >> the russell at a more than one-month high. >> the premise asked at the top. why do you have so much cash on the sidelines and what's going to get it into the market? >> a lot of cash is sitting on the sidelines. >> chase for performance. >> that and also when you have
the type of effect of 2009 we witnessed, people go to sidelines and don't come back. similar to some of this investing in the '70s. don't come back for a decade or so. a tremendous amount of capital on the retail side that just has not participated at all since 2009. the institutional side has done well, liquidity has been an issue for a lot of the institutional side getting into the marketplace, but i think overall, looking forward, i don't know if you'll see that retail money ever come back in the marketplace. >> a lot of bears out there among big names, pete? >> yeah. go to gold. >> get out of stocks, sell everything. >> yep. >> seven years now. >> but more recently, too, though -- >> gotten there, more recently. >> yeah. >> do they capitulate? do they look at what's happening in the market and do they finally capitulate? >> i think a few probably -- >> maybe since i asked a question, will e-mail the
answer. >> definitely considering. you and jim talk about something important to me, volatility. last weekend one close above 12 on the volatility. rest in 11s. amazing. hit new 52-week lows in the volatility index of 1102. look at utility and talked about a very important, i think, look at volumes. we were 3 million under the daily average every day for the derivatives market in the options world. we're in the month of august, halfway through, 2 million under the daily average. there is volume not existing right now, because people are on vacation. you don't want to short a dull market and i think there are folks sitting on the sidelines saying to themselves now, look, man, there are certain parts i've missed it, but it's not over with, because there are, i think when you look at tech, for instance. second half was what everybody talked about. well, second half is coming upon us now. they want to start getting invoted in these names. >> talking a be something i'm interested in. look, talking a lot of technical
stuff. that's interesting as well, but i love the fundamentals. really, what i'm looking at is the last two years, 2015, most of 2016, you had flat earnings. a lot of what's going on now is people believing that the second half as you just talked to in 2017, seeing earnings growth pick up. >> then you're essentially saying, then, it's not going to be only a fed-driven ral ji final rally? >> haven't talked be a the fed. interesting to bring that up. >> sort of the same conversation. says fundamentals will justify where we are, rather than just buying stocks because globally interest rates are low? >> the fed has been tightening. >> the fed is a counterweight. >> fed tightening, in word and deed. the fed stopped quantitative easing while other central banks expanded theirs. the fed is tightening, de facto. not selling off bond holdingses or anything like that, but not buying more. haven't for a long time. earnings stagnated and now that's starting to turn up. we could debate, should we trade at 17, 18 or 14?
next year's estimates. end of the day, it's not a fed-driven rally in the absence of earnings. there are earnings. it's happening. the worst thing that could happen here is we have a parabolic blowoff rally, conceivable, could happen, because that could pull forward another couple of years of this. so i am not on the side that's rooting for a new all-time high every week and certainly don't want to see us pull forward two years' worth of gains but there are earnings now turning in the right direction. something new we couldn't say in 2014 and 2015. >> yeah. mentioned whether the bears are about to capitulate. one bear on a certain stock has done that. valiant shares surging today following an upgrade. mizuho lifting stock from 2 hold to underperform saying the shores thesis, "debunked" it is our call of the day. the analyst behind it is live from new york city. nice to have you on today.
>> thanks for having me. >> is that what this is? a bear capitulating saying the bottom is in, in this stock? >> we've been bearish on the stock a couple quarters. last week we expected them to miss their earnings and lower guidance. and be in default of their debt covenants. instead maintained guidance. the stock surged 25%. the company says they would sell assets and so we are moving to the sidelines, because they've amended debt covenants essentially. even if they miss in future quarters it won't matter in our view. the stock won't get hurt as much and everyone seems to be forward-thinking about this stock and even though we still don't like fundamentals in this business, you know, there's no short event anymore for the stock, and so we are moving in the sideline. >> what do i do, though, with an issue of the debt overhang? it's still there. that's a key part of the negative thesis? >> no, for sure.
so management has told us that they're going to start divesting assets and they're going to. we don't know they're going to get the $8 billion they said they're going to get for some of these assets. it's still kind of aspirational in our view, but even if they start selling some of these things and putting up longer term guidance, we think people are taking a longer view on this stock and willing to give them a little more of a pass near term. we just don't see the stock being as weak as it has in the past and, you know, blowing up as dollar rousely as it did in the first quarter. >> issue of asset sales. bill ackman himself sat on this desk with us and said there are no plans to sell core assets. >> well -- >> you believe that? >> you know, they said that they're going to sell non-core assets. we've outlined a few things we think they could sell. maybe they'll raise as much as $6 billion, probably a little less than that. they have a whole big business we don't think anyone is
interested in buying. overpriced drugs rapidly going generic. declining. why would anyone pay up for those things? they have some things worth selling, smaller things, keep ball sh and lomb and durham. we'll watch and way. see what happens. >> interesting companies within your coverage. allergen among them. does this look like a take-out candidate still at this point? sdun like an allergan have interest in valiant, do you think? >> we don't think valiant has in super high-quality innovative growth assets that allergan were pursue and don't think allergan would be interested. >> what about somebody else? >> i mean, i think there's -- i think maybe parts of the business are attractive. this certainly, the saleex business is attractive. a couple derm drugs. not the whole thing. >> announced valiant last week,
the attorney's office in manhattan investigating the fphl ador relationship? >> assessing what settlement fee they're pay and the cash it are require tornlgts your point do they have the money noor? have they set aside the funds for that? >> i believe they said she haven't set anything aside for it. a rico case in jersey going slowly. not clear what the criminal case in new york would cost them at this time, but certainly they can move assets pretty quickly and sell them as you know, potentially less attractive valuations but we think they could get out of it, again, another reason we're not that short. >> just to go back to joe's initial question, sort of asked two's and i'm not sure we got the answer to the first one. are you concerned about this investigation into fillador or not? >> certainly concerned. i don't think it's going to put the company out of business.
>> gotcha. okay. make the last word. iran re irina, appreciate the time. >> thank you. >> and heard different cases for the up and down side in this particular name. for me i don't see why i want to be in the name. because of what, joe asking that question is relevant where we are now. so many other places i'd rather be, scott. >> the bulls are going to say -- >> didn't go to buy. >> but the bulless say, look, the headline of the filador thing is new, but not new news. not like the street's not being one-sided by something like that. >> true. i have a hard time getting over the fact look at the amount of debt they have, scott, and look where bonds and so forth are trading in something like this. there's a lot of reasons to still be sitting there scratching your head saying, this is not over yet. this is not over yet. i'm one of those guys. >> and m & a? something you've got to consider. do you not? >> well, yeah. so -- >> so the debt, for example, okay, the risk of the debt that
pete and you guys have brought up, yes, it looks bad on a valiant individual case. >> right. >> what if somebody with no or little debt were to buy valiant? then it doesn't look so bad. >> buy it for what? >> i don't know. >> well, so that's the point. right? >> it's a little more expensive -- >> there are assets has when you say buy it for what? certainly there are -- >> hold on. >> why buy the whole company when you can just buy the assets? >> are there assets that fit into someone else's strategic road map? people are on the show, shareholders, even management. at this time we have 230 no plans to sell any assets. fine. people in their 20s don't have plans to gain 40 pounds and drive a minivan. it's going to happen. take it from me. so eventually maybe they sell a piece of the company. why would someone buy the whole company? >> not sender aboconcerned abou weight gain, dbut do you drive
americany van? >> that was great! >> this was an important point. >> of course it could be a takeover target. if you were it, paying enterprise value, including the debt. if you buy the assets, then probably you're looking for innovative new drugs or something on the path towards that. this is a company that prided itself in cutting r & d spending until recently. now talking revamping it. not a ton here. not like buying a biotech with six or seven drugs in the pipeline promisesing. this company was based on financial engineering. why would someone want tony harriet that? >> quick. >> goldilocks scenario. that is not going to happen in the next three to six months for this company. it's going to take time. we began the show talking about asset pricing at historic highs. with asset prices at historic highs, why waste your time involved in a company in the next three to six month will not give the bull scenario we're laying out here? >> all right. it's done. >> rhetorical?
>> here's what else is coming up on the "halftime report" -- >> announcer: gold. silver. and the dividend game. the miners are getting back in the spirit of returning money to shareholders. how much will they give back and which companies will lead the way? that's next. also ahead on the "halftime report" -- are we about to get some conviction in the oil market? opec members are starting to chat. stephanie link making some bold calls on oil and energy stocks. she's coming up. more "halftime with scott wapner" straight ahead. >> announcer: the "halftime report" is sponsored by -- there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points
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we're back on the "halftime report." met manies on the move. gains in gold and silver this year, pretty good, to say the least. pete, been in the miners. now the ft raises issue of raising dividend payments by these company pointing out newmont, randgold, talked about it. talked up the possibility. >> and i don't know if it's necessarily too early for that, scott, but one of those situation where is we've seen the price of gold. know where it's gone. watched the gdx and rest of it, miners themselves move into the up side and know the environment we're in. and we continue to hear from around the world, where are these interest rates looking like they'll be the next period of time, and this would give them that much more interest in somebody like a newmont, or any of the big ones. if they want to increase or add it in cases, something i don't
think is beyond anything crazy. >> and some sort of multisyllabic german term for buying the gold miners to escape the currency and paid a higher dividend in dollars. probably a classic inconundrum. they can work, if there's stability to price. they don't necessarily need gold to rally up to 1600 or something like that the problem talking about gains. you have to add further in there. gains have been unbelievable. gold up 27% year to date. silver up 44%. companies within that, newmont up 152% year to date. bht, 21. freeport up almost 80. >> a lot are off extreme lows. >> and probably still light years from highs, i know, but -- >> worth bringing out. >> we bring up equities all the time. end of december, if you actually
had what whether you call the courage or bravado to step into the high-yield market and not just buy energy bonds but a lot of the metals and minings-type bonds. they've done even better. the reality in terms of earnings and the ability to grow your dividend for these companies comes from the improvement on the high yield side. not have be significant debt service you previously had and narrows of spreads seeing for bonds. >> i'm not as enthusiastic as you guys to be clear. has to do with what josh touched on. gold is looked at as a replacement or antedote for fiat currency. certainly this year talking about a lot of negative interest rates and more central bank easing. >> negative sentiment more than anything as well, maybe. you're on the other side of that. naturally, wouldn't you be negative on the point of view from the other side of the desk? >> exactly. what i'm saying. >> i don't have a view. not enthusiastic on miners. >> touched on antedote for fiat
currency what i'm saying. >> sure. >> talking on the desk the last week maybe when janet yellen speaks, a sea change. if that happens, takes gold down rapidly i think and hurts stocks regardless. >> josh is right. the u.s. is already tightening, by product of -- >> but the market doesn't know that, joe. >> of course. absolutely the market knows that. by what the ecb is doing, the bank of japan is doing, the rest of global central banks are doing and by what we're not doing here in the u.s., we are de facto tightening. the question is, do we want to accelerate? >> the last time didn't tighten. specifically mentioned brexit. getting ridiculous. running out of excuses. luke at things like wage growth and average hours worked. the odds for future fed tightenings probably have room to move up and an actual fed tightening at one of the meetings whether september or the end of the year, i doubt is
bullish for gold, unless it seems like they really had 20to did it and we see a pickup in things like cpi. crude oil prices are higher year over year, at least wti, brent not yet. no longer a anchor and start to work as a tail wind. the types of things that could change the mind-set there. >> and don't forget, quick, say this. the fact knewnewmont hits 52-we highs. doesn't go down as s&p comes up. and micron up nearly 20% over the past month. too late to jump into the semispace pete likes? plus tesla, self-driving drama. automaker dropping the word autopilot from its chinese website. not here in the u.s., though. what's up with that? what's ahead for the stock? talk about that, next. made plastics that make them lighter? the lubricants that improved fuel economy.
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world-changing machines. machines that can talk to each other digitally. hello? they don't talk to each other like that, ricky. shhhh, you'll anger it. he looks a little ticked off now. all right, sir. trader blitz time. we begin with twilio, which is soaring today. give me a great call on this one. >> talked about this thursday. the stock went from 45 to 49 on thursday. the stock is 60 today. what is happening is that the analysts, the reality of strong earnings that are not driven by
a large contribution from whatsa whatsapp, biggest customer, earnings up 70% coming from other places. whatsapp is actually not contributing as much. >> right. taken me from 44 to 60. what do i do now? >> scares me. when you're scared, it's a hard trade and usually that's the right trade. probably continues to march even higher. by the way, jim cramer talked about this all the way up. >> in $61. micron, pete? >> absolutely on a rocket ship ride. a poison pill, incredible knuble activity, almost every day including today. huge buyers in there. i've jumped on again. i was out but because of the buyers today i'm back in. i think this thing's going towards 20. >> jimmy, super quick, upgrade? >> the refining margins are so terrible right now, just a sector to avoid. just that simple. >> okay. stephanie link about to make a big call on oil names coming up next and depot and t.j. maxx
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get the h20. that's the cnbc news update. back to you, scott. >> thanks so much. crude, back above $45 a barrel after rallying nearly 6% in the past week. at a one-month high. jimmy? >> a lot more talk in the last few days about opec producers getting together and maybe coordinating on at least production leveling if not cuts. the problem, still at least three major players out there that will come on with more supply. one is iraq, pumping at 5 million barrels a day nap in and of itself is a huge number but they're intent on raising that. iran stepping up production and libya, a trickle now trying to upgrade its production as well. put it all together, it's hard to see it rally much further. might get a couple more dollars per barrel on the news of opec talks. still not until late next month. meantime, you could see it drop back down. >> a little offinot of action o.
and valero and the -- >> connick oh and xle. spread out. i really like energy. the way i've seen paper coming in scott, including last week, continues to be bullish. talking about xle, the crack under the 50-day moving date. technically a concern a moment. for a moment. suddenly bounced back above we're off to the races again. >> the hedge fund community got a short crude oil as in many, many months. largely contributing to why you see it rebounding. >> cnbc contributor, croft, who made that comment about the bear trap in oil. that people have gotten too negative. >> same people that are mega long in the tlt right here, by the way. hard to admit when a trend has changed. there's a tendency to want to double down sometimes. we've all been guilty of it. i think that's what you see in the big macro trades right now.
>> stick with oil. stephanie link with global asset agent betting on an energy rebound near the end of the year and today bringing latest picks in that space. a segment we like to call "the missing link." how are you? >> good. how are you? >> good. stocks, dov? >> i actually think it's time to get more beta in energy. i've focused on best in breed high quality names like eog, chevron, schlumberger. today is the time. use volt tilt any energy, i think whe think a better into the end of year. more beta. dover is one. dov. this company has margins 20 points below prior peak. so, therefore, if you think energy is going to recover, there is upside to margins. the company also posted orders upstream orders, in their most recent quarter, april to june, up 18%. free cash yield of 7% 2.3%
dividend yield i like it in the industrial space. >> a new buy, too. scooped it up just lack we're. what about bhi? >> i like baker hughes. i like schlumberger. a little ballot ta on the bhi. a restructuring story. halliburton fell apart. they have to go back to square one, figure what they want to be. a restructuring plan in place. $500 million cost cut plan this year. they have margin upside. possible leverage to the balance sheet and $4 potentially in earnings power over the coming year. i like this one along with schlumberger. >> make you pivot, go retail. retail earnings coming up as well. tjx, home depot. thoughts on both stocks if you wouldn't mind? >> yeah. you know i've been positive on t.j. a lot. a secular winner in the off price store format. i'm concerned in the medium term is that you've seen a lot of these department stores most
recently with leaner inventories. t.j. and ross thrive on bloated inventory levels. the stock is a champ. i own it. thinking if they have a good quarter i might trim it. actually been buying target. i think you guys know that. i just started getting interested way 3.5% dividend yield and because the stock lagged walmart 16% year to date and like the restructuring story. may be an ugly quarter this week but i'm looking to buy more at that $70 level. i prefer lowes over home depot but secular trends are strong in both. >> steph and i talked about this name for years. steph, quick question. how do you view ross, though? do you like them as much or almost as much as t.j.'s or no? >> i kind of like t.j. better than ross because they have name brands. ross stores has more private label, if you will. they have kind of that lower end. also t.j. has the home side of
the story, on fire. own them both. secular winners, both are. both are very well liked now and very well owned and i see maybe more upside to the department stores kind of some of the beaten down names for a pop, and a reversion trade into the end of the year. >> steph, thanks, as always. see you back on the desk soon. >> thanks, scott. >> all right. tia, stephanie link. traveling soon haven't book add flight yet, don't move. passengers and investors might not be on the same page as this one. coming up next. first, melissa lee what's coming up on "power lunch." >> hey there, scott. big warning signs, stocks hit record highs. pimm cope ceo joins us and plus headed to rio for an exclusive interview with under armour ceo plank and who do you think the typical residents are, lawyers, solve ware engineers? we'll meet a couple forced to move because they could no longer afford 20 lito live ther.
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markets here. major averages at all-time closing high levels, if they stay right here. take a look. dow jones industrial up 76 points. pretty much highs of the day. 18652. 653, where the dow is. s&p 500, 2192 and nasdaq, been on fire of late, all of you know, at 5268. a gain of 35 points. the russell, by the way, at a 52-week high. its highest level now in a month. not an all-time high, nonetheless one to watch. small caps arrives at this party as well. and air prices expected to drop according to an analysis website hopper. good tore the consumer, low price koss weigh on airlines' bottom line. pete, delta and american. what's up with these stocks? >> not happy about it.
obviously, i've talked about the airlines a very long time and thought they had a great opportunity in front of them and have not been able to execute properly. obviously last week, something that happened with the computers with delta. another issue that had come up. the airlines, much as i like them now, scott, you can't look at valuation. they've been cheap forever. the last couple of years look at these things say, single digit valuations, so forth. the problem has been on some of the execution part and haven't been executing properly. why they've you can see the numbers, they reflect that. >> delta year to date down 28%. united down 16%. american down 16%. southwest down 15%. jetblue down 25%. >> hmm. >> hawaii air. that's probably the only investable airline at this point. >> takers at these prices? >> no. >> this is -- the timing on this matters a lot. this is late in the cycle. timing you want to buy these things is coming out of a recession. a few bankruptcy, balance sheets cleaned up, valuations low
because everybody hates them pup may still get gains from here. sorry, pete. it's late in the cycle for these. >> yep. it's painful. i thought the discounters would do better. put up numbers like jetblue and southwest were you expect maybe they'd be able to outperform big guys under certain circumstances. they're just as bad if not worse. i think a bit shocking. >> staying with transports. an interesting story. tesla removing the word for autopilot from its chinese website. following complaints over the way it markets the technology after a beijing driver crashed while in self-driving mode. interesting story. josh, what do you make of it? >> smart. because words matter. and especially in a pliace like china, a different language and something could be lost in translation. the term autopilot probably gives the software more credit than what it actually does. it does not give you the ability to not pilot your car. i think that's probably smart. you might see it happen around
the world. >> who else has takes on tesla? what the stock has done? people have been trying to throw the kitchen sink. >> everybody thrown at it. >> it doesn't work that well. tesla still up 3.5% over the past month. >> it's a cult. >> they've had everything come at t. everything. and petal running through unusual trading active coming up next. fir first, show you the s&p heat map. what's leading. materials, best performance. steri industrials, energy and tech. we're back after this.
we're back. resident options sees something unusual. at the telestrator. pete, what's going on? >> in twit perp talking about this name a long time. ever since talk of balm myrrh getting involved. tweaked something. apple tv talk and the rest of it. you can see by the stock price at a little over 20, almost 21. look at just today. this is a pretty sharp move to the upside that twitter has been able to make. what i wanted to point out to you is last week and the last week and a half or two weeks we've seen nothing but paper, paper, paper. last week somebody came in, bought 24,000 of the september 22 calls, scott stock trading. the march 22 calls bought as well. clear up.
it wasn't huge, but the value dollaring going to march a decent buy, and somebody buys s few thousand, combined with last week, combined with the last couple of weeks of paper, paper, paper looking for upside. interesting to watch twitter and the way it's trading and the possibilities what they've been able to do and anthony noto has been able to do in the last few days. >> maybe somebody a group i don't know. betting something's going to happen based on options activity, something's going to happen from a transactional standpoint by the first quarter of 2017? >> right. the point of the thing. paper, mostly short term and stuff where it's been three days out it will expire. getting -- >> this is longer. thinking, okay, not happening tomorrow. >> or -- related to fundamental change at the company. >> right. >> and not just the usual once a week rumors. keep in mind. >> fundamentally what's changed to drive the stock from where it
was to -- >> so glad you asked. let me tweet back at you. twitter forever compared to facebook and everything it lacks that facebook has. twit hear something very special about it. not fully monetized yet, but people tend to watch they're favorite tv shows with twitter open, not facebook. the deal with the nfl to tie in with apple, potential to increase and to put the twitter experience watching a sporting event on a much bigger screen and in fronts of a much bitter audience. that's important and people are probably excited about it. i'll be watching all the nfl games with twitter open. why? the guys i have sitting next to me on one side or the other, not that interesting or knowledgeable. however, people on twitter, experts, columnists. guys that cove the giants beat. >> you talking about us? >> no, no, no, no, no. friends of mine. >> sounds like a call out.
>> people enjoy watching fa favorite events on twitter. >> definitely don't want to be on the side of you. >> would love to watch football with you. >> fine. >> carl icahn might be right pap society that that just tweets and texts each other, but the usage of twitter and josh really highlights think about what it will be like on election night. you will get all of the news, all of the content. >> for the people who are already on it. >> but you're not on facebook looking for expert comment. >> no, you think people are going to sign up for twitter just in time for the election so they can tweet back and forth? >> i wouldn't be surprised that there is some data that shows sign-ups go up, either leet e leading into a major event or during. >> first debate in september on twitter. >> lights out. no one's going to be on facebook for that. >> no, of course, the people who are already on twitter will be on twitter that night. >> so bring this full circle. that's what they need -- they need more of that. they need people knowing for a
major event, sports, politics, whatever -- >> they already have that. >> they need more than just that. they need more people in the living room. twitter has become people's living room for -- >> which is why this apple tv news could be interesting. >> it could be something interesting. >> we're not talking the apple side of it. >> facebook when zuckerberg talked about this last earnings quarter a lot was focused on strid owe ads and where that's going and that could be the growth engine for twitter. it has not been with the monthly average user. >> let's branch this out into tech more, which by the way all down today in a an up market. facebook, amazon, netflix and alphabet all negative on a big day. josh, you mentioned -- >> except if you take my suggestion and remove netflix and add nvidia and then you would have one green stock in fang. >> joe. >> that was a nice call on nvidia. excellent call on the fundamental support. if you go back, i read the earnings conference call
transcript, there's real growth going on. >> it's great, right? >> there's real growth, what they're seeing in the acceleration that's not something that will be one or two quarters. this is something that's not cyclical, it's secular. >> if we're replacing letters, put apple where amazon is and 96 from the moving day average up to 109 today. apple on fire leading -- >> or to extend this. i mean, 2016 is vastly different from 2015. it's value over growth. it just is what it is. you can look at any number of old line technology stocks left for dead at least in 2015. pete, you and i talk about cisco a lot, throw qualcomm, intel, microsoft, all of those old line technology names are thriving this year where they couldn't, you know, you couldn't buy them for anything last year. >> there is one name, i know pete and i about three months ago talked about this name. no one talks about the move in texas instruments. above $70, 28% year-to-date. and i just kind of -- it highlights the fundamental turn that really began this tech move
for the semis. semis started this. >> guilty as charged. we never mentioned texan. >> no, that name it just seems to fall off for whatever reason. but we mentioned sirius logic -- >> 28% year-to-date is boring. >> right. they're not in the hottest end markets that we tend to talk about. but there's an acronym we can use. m.i.c.e., microsoft, sisz koe, emc. >> that's a stretch. >> all right. >> no, it's good. >> we'll go to break and when we come back we'll talk about why pete doesn't watch football with me. but first, seema mody has more at the market flash desk. >> as markets trade in record high territory, take a look at the ishares defense and aerospace ticker gaining 1% led by esterline tech.
the ita on pace for its best day since july 26th. the etf has gained more than 12% so far this year, scott. >> seema, thanks so much. we'll look ahead to earnings this week coming up next including a handful of retailers. elle brands, walmart, gap, foot locker, few more. "halftime report" back after this. ♪ mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy. and you thought we just made the gas. ♪
commercials, in a segment we're calling fast break. >> i know i'm beating the same drum constantly. that's a ten-year chart of the vix. >> i don't want to see it. i'm only going to lose money. i don't want to see it. >> you still long shake shack? >> yeah. >> i have a big problem with that place. the customer service, it just takes forever. >> it takes forever. >> it takes forever. >> and yet the lines don't diminish. >> but i could go on my burger app. >> it's not as good. >> you don't think so? >> i ate the original in de del rey, it's okay. just okay. >> never heard of that. >> a lot to sink your teeth into there. badumbum. >> second half trades, good earnings to go, what are you watching, pete? >> tjx i think stands out, steph broke that one down, i'll say foot locker. we talk about this name a lot,
valuations are low, a name when you consider the atleisure space they should be doing extremely well. we'll find out in earnings, but this will tell us a lot about is the athleisure starting to fuel things in terms of accessory world of clothing. >> we said cisco too, didn't we? >> yep. >> there's your calendar. so it's a good mix of retail, home depot and lowe's. >> think about cisco here is obviously go back to 2000 stock was at 75.80 and has come anywhere near there, now it's at 31.5ish, 31.15, if it gets above 31.50, the next stop is 33.20 it saw in 2007. beyond that if you look at a 10-year chart this thing has been steadily moving upwards, about a 3% or 4% dividend yield. about a quarter of market cap in cash. a lot to like here. >> what about deere, josh, i think on friday of this week? >> yeah, i mean, deere is interesting it reports good or bad, stock gets hit and recovers really quickly, because i think
it's under accumulation. berkshire hathaway steadily raised its position. i don't think they're so worried about quarterly earnings. i think they're looking at potential of a trough in agriculture in equipment. and it's tough to time, but it's also tough to get in after it happens. so i think that's what's going on there. >> foot locker. joey. >> foot locker i think should be decent. dick's sporting goods, which is tomorrow morning, is one i would focus on more with the closings of the sports authority. most of those stores are conveniently located to a dick's sporting good. you wonder if they're going to pick up the market share. i suspect they will. >> they've got the intellectual property from the sports authority. so i think when you try and go there it automatically goes -- online, it goes to dick's sporting goods. >> are people going fo focus on the right things or continue to look at golf galaxy, which is a minor part which everybody seems to focus on every quarter. >> what about walmart? >> big dow component.
it's actually done well. had a nice run. >> the jet deal. >> yep. >> we like it. >> the question on jet is is it defensive or offensive? and i don't think we'll get a resolution to that until they actually incorporate it into their own e-commerce efforts. >> guys, good stuff. see you tomorrow. power starts well. yes, it does. i'm michelle caruso-cabrera on the "power lunch" menu, the $13 trillion warning sign in bond land as the stock market hits record highs. pimco's cio joins us. plus, don't stick a fork in the malls just yet because foodies may be to the rescue. we're going to dig in with r restaurateur tim love. and later, zip code insanity, a worker forced to quit her job on the palo alto planning commission because she and her software engineer husband can't afford to live there anymore. "power lunch" starts right now.